PROPOSAL 1 — Increase the supply of affordable housing

The European Affordable Housing Plan stresses the need to increase the supply of affordable, sustainable and good-quality homes, especially in areas where demand is high. This means building new social and affordable housing, but also making better use of existing buildings through renovation, conversion and the reuse of vacant homes.

Full Reference text, excerpt from European Affordable Housing Plan

Addressing the mismatch between housing supply and demand requires a substantial increase in new homes, especially in high-demand areas. Expanding social and affordable housing is particularly important to support low- and middle-income households.

Housing supply is impeded by low productivity, insufficient scale and capacity, and high costs in the construction and renovation industry, as well as a lack of skilled labour. Many and complex rules, at all levels of governance, lead to additional delays and costs. Inspired by the New European Bauhaus, Europe must lead a housing transformation that unites affordability with sustainability and quality to create inclusive, future-proof living spaces. Investment in digitalisation at every stage of housing planning, design, permitting and operation will further support housing supply.

Maximising the efficient use of the existing building stock – avoiding unnecessary demolitions and waste – should be a priority, alongside new construction. This includes renovating inefficient buildings and repurposing them and bringing vacant properties back into use, as well as regulating short-term rentals (STRs) where they compete with long-term housing use. Improving transport links, broadband connectivity, and the provision of essential services, can also make underused housing in rural areas more viable and attractive, helping to relieve pressure on urban markets and supporting balanced, sustainable development across the EU.

• Question for participants: Should increasing the supply of affordable housing be the first priority of the European Affordable Housing Plan?

• Open question for comments: What should be prioritised: new construction, renovation, reuse of vacant buildings, faster permits, or social housing?